Green Packet will set up a joint venture with leading Saudi Investment Company to further penetrate the Middle East market

Kuala Lumpur, June 15, 2006 ¨C Green Packet Berhad (MESDAQ: ¡°GPACKET¡±) announces that it will be entering into a strategic joint venture (JV) partnership with the Saudi Economic & Development Company (SEDCO) as part of the company¡¯s strategic plan to penetrate the vast Middle East market.

The planned 50-50 joint venture with an initial paid up capital of RM18 million, will offer a direct channel for Green Packet to market and distribute its wireless networking and telecommunication products and solutions to the Middle East markets (that include Turkey and Iran), and beyond covering North Africa, Pakistan, and India amongst its target overseas markets.

According to Green Packet¡¯s CEO Puan Chan Cheong, penetration into the Middle East market has always been part of Green Packet¡¯s strategic plans and this JV undertaking is the culmination of the efforts so far.

¡°The company to be formed (¡°JV Co¡±) will market the existing and future solutions of Green Packet to the region; including SONaccess, SONbuddy and SONmetro. The JV Co will also be a component for Green Packet to secure recurring revenue by operating networks for the roll out of wireless broadband services. This new JV with SEDCO is our means of executing this plan in the Middle East and the related markets there.¡±

Yousuf Khayat, Managing Director of SEDCO says that the company decision to form the joint venture with Green Packet was driven by the latter¡¯s strong performance over the past years, scalable business model and research and development capabilities for the proliferation of wireless access technologies.

¡°SEDCO prides itself as the leading private wealth management and investment organization in Saudi Arabia and the Middle East. We are long term investors who look for opportunities to invest in promising Asian companies and help the businesses penetrate the Middle East Markets. In this regard, we are very happy to partner with Green Packet, join hands growing the wireless access solutions market in this part of the world,¡± says Mr. Khayat.

According to the International Telecommunication Union, broadband subscription in Arab States is below one (1) percent. Currently, a 256Kbps (kilobites per second) Internet connection in Saudi Arabia already costs between RM430 to RM550 per user per month. This is compared to RM66 per user per month for a 1MB (megabyte per second) connection in Malaysia.

¡°Our market research shows that with the right solutions, it is possible to satisfy the demand for this market (Middle East) in the very near future,¡± reveals Puan.

This partnership with SEDCO will be the second of Green Packet¡¯s business endeavor in the Middle East. On 31st May 2006, the company signed a memorandum of understanding (MOU) with Kalaam Telecommunications Bahrain that enables the provider to utilise Green Packet¡¯s technology for the deployment of a wireless broadband "last mile" solution over a two-year period.

Private Placement Exercise will raise RM91 million
To strengthen the partnership, Mr. Khayat added that an affiliate of SEDCO has commited to subscribe in the Proposed Private Placement of 36,725,000 new ordinary shares of RM0.10 each in the share capital of Green Packet at RM2.47 per share vide a company related to SEDCO. This sale shares represent ten percent (10%) of the issued and paid-up share capital of Green Packet based on the issued and paid-up share capital of Green Packet as of to date prior to the new private placement.

In effect, this sale shares transaction which translates to close to RM91 million for Green Packet, marks as one of the largest private placement investment for a single party in a MESDAQ listed company in Malaysia.

About GREEN PACKET
Green Packet Berhad (GPB) is a leading global developer of Next Generation Mobile Broadband Networking Solutions. GPB¡¯s mission is to provide a seamless and unified platform for the delivery of user centric multimedia communication and services regardless of the nature and availability of the backbone infrastructure.

GPB¡¯s SONaccess is designed to enable fixed-mobile convergence, WLAN-cellular integration and secure seamless roaming across multiple networks. Its primary feature is the concurrent delivery of all media types ¨C voice, data and video ¨C to an easy-to-use graphical user interface, independent of location and type of networks.

GPB¡¯s SONbuddy is a software that turns each Wi-Fi device into an intelligent router so that they automatically organize a multi-hop self-healing network without the need for an access point or other wireless infrastructure. All the users within this Self Organizing Network (¡°SON¡±) can communicate with each other using the built-in applications like VoIP, Instant Messaging, File Exchange and Screen Sharing.

GPB¡¯s SONmetro range of products enable the provision of wireless broadband connectivity at GSM type coverage with DSL/Cable data speeds at a cost substantially lower than any other wireless solution. SONmetro is powered by ODMA and is an intelligent relaying system, where the path and method of transmission are not predetermined, but adapted dynamically based on available opportunities.

Listed on the Malaysian Exchange of Securities Deadline & Automated Quotations (MESDAQ) market of Bursa Malaysia in May 2005, GPB has the largest market capitalisation amongst companies listed on this technology market (RM950million as of April 13, 2006).

About SEDCO
Saudi Economic and Development Company, is a leading private wealth management and investment organization that conducts its business according to Islamic guidelines widely known as Shari'ah. It manages a wide and diversified spectrum of real estate investments, investments in equities, and other businesses in Saudi Arabia and around the world. The Organization is based in Jeddah, Saudi Arabia, and has more than 1,500 employees. It is organized into three business groups, Real Estate, Financial Investments, and Direct Investments.

SEDCO is different from other regional private equity players because its investment decisions are not driven by the goal of short-medium term financial gains. Instead, the Direct Investment Group (DIG) brings unique value by staying in businesses for long periods as a strategic partner with a strategic equity stake. It helps management develop and improve the corporate culture of the business, helping the business to grow in new markets, and bringing professional knowledge and know-how from around the globe. It has a vast network of partners which it will leverage to help the business build new alliances, source new suppliers, ensure more efficient financial and risk management, and expand and grow the business throughout the Middle East-North Africa Region.

SEDCO was the sole founder of the National Commercial Bank, Saudi Arabia's first and largest privately owned bank and one of the largest financial enterprises in the Middle East. The shareholders of SEDCO divested all their interest in NCB in 1994, and focused their assets into its current investment businesses.